De Minimis Benefits

Revenue Regulations No. 29-2025, effective 6 January 2026. Amounts within these ceilings are not taxed.

Updated October 2026. Based on 2024-2026 BIR tax tables, SSS, PhilHealth, GSIS, and Pag-IBIG contribution schedules.

De minimis benefits are small facilities and privileges an employer gives an employee. Within the ceiling they are excluded from taxable compensation. The salary calculator does not subtract them, because they are not part of the mandatory deductions. If a cash allowance is above the ceiling, the excess belongs in taxable pay.

Benefit	Ceiling
Monetized unused vacation leave, private employees	12 days a year
Monetized vacation and sick leave, government employees	No peso cap in RR 29-2025
Medical cash allowance to dependents	₱2,000 per semester, or ₱333 per month
Rice subsidy	₱2,500 per month, or one 50 kg sack not over ₱2,500
Uniform and clothing allowance	₱8,000 a year
Actual yearly medical assistance	₱12,000 a year
Laundry allowance	₱400 per month
Employee achievement awards	₱12,000 a year
Christmas and major-anniversary gifts	₱6,000 a year
Daily meal allowance for overtime and night shift	30% of the basic wage
CBA and productivity incentives, combined	₱12,000 a year

Source: Revenue Regulations No. 29-2025, amending the de minimis list in Revenue Regulations No. 2-98.

Frequently Asked Questions

What happens above the ceiling?+

The amount within the ceiling is not subject to income tax or fringe benefit tax. The excess is taxable compensation, or a fringe benefit if it is not part of compensation income.

Is a rice subsidy of ₱2,500 still exempt in 2026?+

Yes, up to ₱2,500 a month, or one 50 kg sack not exceeding that amount, under RR No. 29-2025 effective 6 January 2026.

Other Tools You May Need

Salary Calculator

Compute your net take-home pay

SSS Contribution

Employee and employer SSS shares

PhilHealth Contribution

5% premium, floor and ceiling

Pag-IBIG Contribution

Employee share and the ₱200 cap

Withholding Tax

Monthly TRAIN Law withholding

Overtime Calculator

Overtime & night differential pay

13th Month Calculator

13th month pay computation

Budget Calculator

50/30/20 budget planning

Contribution Tables

SSS, PhilHealth & Pag-IBIG rates

Tax Guide

BIR income tax table 2026

Holiday Pay

Holiday and rest-day rates

Final Pay

Last paycheck and the 30-day release

Freelancer 8% Tax

8% tax above ₱250,000

Minimum Wage

NCR-28 and the tax exemption

Salary Grade

Government pay and GSIS